international
construction
december 2014
REGIONALREPORT
18
Growth amid turbulence
Meanwhile, Johan Haglund, vice
president of Volvo Construction
Equipment in North Africa, sounded a
note of caution that a broader downturn
in the continent’s mining industry had
impacted on the construction sector.
Despite this, he felt there were
encouraging signs with an upturn of
activity for the company.
He said, “I think that Algeria has
been the strongest economy in the
region for the past 5 or 6 years with its
infrastructure projects, though there are
also a lot of things happening in Egypt
now including the SuezCanal.
“Wearedoingall thatwe can to support
our networks out there and we have our
own distribution business there.
“Probably the biggest change we have
seen is the entry of Chinese companies
into the market there, which led to us
bringing in the SDLG brand, which
brings opportunities in having value
products that areworkingwell.”
As a means of enhancing its reputation within the region,
it has started a pilot training scheme programme in Ethiopia
(thatwill be expanded to a total of 10African countries) tohelp
recruit the next generation of technicians and engineers.
RudolfArnold,managingdirector of Liebherr export, believed
2014 had been a productive one for the company – which has
provided equipment including excavators and cranes for a
number of large-scale projects withinNorthAfrica.
He said, “It is undoubtedly the case that Algeria in theNorth
African region isby far thebest emergingmarket.This isdue toa
comparably stable situation in combinationwith a government
that reinvests continuously the income of exports of the oil and
gas sector into housing and infrastructure projects.
“Consequently, the import of construction machines have
reached a high level. All our constructionmachinery divisions,
such asmobile cranes, tower cranes, concrete, earthmoving and
mining, participated very positively in themarket.”
Another construction company experiencing an upturn
in fortunes within the region is Bobcat. Gaby Rhayem, the
company’s regional managing director, said that despite the
complex political picture, therewas cause for optimism.
Following re-evaluation of its dealerships within Algeria,
he said there was strong potential growth with a number of
infrastructure projects in the pipeline.
He said, “I think that 2015 is looking like itwill be a goodyear
in Algeria. We have introduced a new product, the S450 skid-
steer loader to themarket, whichhas proved versatile for use on
a number of construction sites.
“There is also a strong market for telescopic handlers there,
which have enjoyed a good level of business. We are very
optimistic about next year –we have newpartners in the region
and believe that business is going to grow there. It’s going to be
an interesting time.”
Egyptian growth
While Algeria has seen perhaps the most active construction
sector in the region, Egypt’s decision to start its Suez Canal
upgrade lastmonth has captured global headlines.
The scheme is significant in opening up a new parallel 50 km
channel that will allow commercial shipping to transit in both
directions simultaneously.
>
Liebherr cranes ready to be
exported to Algeria for work on a
number of key sites.
Volvo’s regional constructionmanager
JOhan Haglund believes there is
potential despite political conditions.
Gaby Rhayem, regional director of Bobcat say Algeria is the
best performing in the region
Bobcat’s S450
has been released
in North Africa
this year.
